THE 10 MISTAKES TO AVOID WHEN SELLING YOUR North Carolina Home

THE 10 MISTAKES TO AVOID WHEN SELLING YOUR North Carolina Home

When it comes to selling your home, most folks want to sell fast and for top dollar. To help you achieve that goal, we offer these insider tips on the 10 mistakes to avoid when selling your North Carolina Home. 

THE 10 MISTAKES TO AVOID WHEN SELLING YOUR North Carolina Home

Homes For Sale in Charlotte, NC:

Mistake #1: Pricing the home too high

 

A home is most attractive to potential buyers when it is new to the market; it loses its shine the longer it is for sale. If you price your home too high at the beginning, you may miss a crucial opportunity to attract buyers. Even if you later lower your price, some buyers may remember they originally dismissed your home and not give it a second look. It’s the equivalent of your home becoming shop worn.

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Mistake #2: Being unaware of where you home fits within the current real estate market.

It pays to be aware of the competition that your home will face when it is on the market. To that end, we suggest you take a look around at the other homes for sale in your neighborhood and the surrounding neighborhoods. Pretend you’re a buyer and compare your home to what else is on the market. If you can, take off the rose-colored glasses to honestly assess how your home’s condition and location stacks up. With this information in mind, you will have a better idea of how to price your home so that it is exciting to potential buyers.

 

Mistake #3: Not knowing what buyers are looking for in today’s North Carolina real estate market.

Buyer preferences change over time. There was a time that buyers wanted a fixer upper, but these days buyers in North Carolina want homes that are “turn key,” meaning they require no fix up, remodeling, or initial maintenance. That can pose a challenge for North Carolina homeowners that have charming, albeit somewhat quirky older homes. There are ways around this. If you’re worried about the condition of your home, let’s talk. 

Selling A House Shouldn’t be Stressful

There is a pro-active way to sell your home that gets results

Mistake #4: Investing in home improvements that won’t yield a high return on investment.

 

You know those HGTV shows where the homeowners invest $10,000 and then make a huge return on their investment? It doesn’t always work out that way. In fact, we’ve seen a lot of homeowners spend significant resources to remodel parts of their home that we know from experience aren’t going to add value to the bottom line of the sales price. If you know you are planning to sell your home, talk to an experienced Realtor before investing in a remodel. We know what changes will get you the most bang for your buck, what exterior paint colors tend to turn buyers off, and what little changes can have a big impact. If you would like to know what renovations make the most sense, click here!

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Mistake #5: Limiting your home’s exposure to potential buyers.

Homes won’t sell if they aren’t seen by potential buyers. Yet, some homeowners attempt to cut costs by selling their home on their own without the expertise of a Realtor. Similarly, other homeowners sell to an individual buyer before the home is ever officially marketed. And in other cases we find “pocket listings” where a home is marketed for sale privately by a Realtor without putting it in the real estate sales database, usually to protect the seller’s privacy. Each of those scenarios limit the amount of exposure your home will receive, and that, in turn, can result in a slower sale and a loss of profit.

When you list your home for sale with a Realtor they will put the home in a real estate database called the Multiple Listing Service (MLS for short). Listing your home in the MLS offers the property the greatest exposure because it is actively marketed to all 20,000+ Realtors in the Charlotte-metro area, and it is also usually automatically syndicated and displayed on third-party sites like Zillow or Trulia where it reaches an even larger audience of potential buyers.

Indeed, the data suggests more than 90% of North Carolina homes sell from the MLS. Withholding a property from the MLS significantly diminishes these marketing opportunities, and often does not yield the highest price for the property.

Selling A House Shouldn’t be Stressful

There is a pro-active way to sell your home that gets results

Mistake #6: Not preparing the home for showings.

 

As you might imagine, messy homes with piles of laundry and a sink full of dishes don’t show well. While your home is for sale, it is important to make it appealing to buyers. So make the beds, put away the laundry, wipe the counters, sweep the floors, and put your home’s best foot forward. Not sure where to start? Review our checklist for preparing your home for showings. Would you like to learn how to best prepare for showings? Click here!

 

 

Mistake #7: Making your home difficult to see.

 

 

It’s a total pain to have to vacate your house every time someone wants to see it. And yes, potential buyers will want to see your house at times that aren’t convenient for you. Even so, do your best to accommodate them. Most showings that are refused don’t get rebooked; instead your home just gets eliminated. Along those same lines, strict showing rules with limited hours of availability will also decrease the likelihood of your home being seen. And homes that aren’t seen aren’t sold.

 

Mistake #8: Not preparing for the buyer’s inspection of your home.

Many real estate transactions fall apart after the buyer has the home inspected. To remedy some of this deal turbulence, we suggest that sellers have their home pre-inspected. Doing so will let you know if there are any underlying issues with your home so that you can either fix the problem before you put it on the market or adjust the price of your home accordingly. Providing potential buyers with a copy of the home inspection before the home is under contract also reduces the likelihood that the buyer will come back and attempt to re-negotiate the purchase price based on the outcome of their own inspection.

Selling A House Shouldn’t be Stressful

There is a pro-active way to sell your home that gets results

Mistake #9: Using an inexperienced or amateur Realtor.

There is no substitute for finding a Realtor who has sold homes in and around your neighborhood for many years. Too often we see listings languish on the market because they have poor photographs and are not successfully marketed by the real estate agent. We’ve also negotiated many deals where we’ve used a Realtor’s inexperience and lack of knowledge of the local market to get an amazing deal for the buyers we represent. Don’t let yourself be that person. Pick a Realtor who has a track record of success and intimate knowledge of North Carolina real estate. You want someone who has experience with all aspects of North Carolina’s real estate cycle, who can easily navigate market fluctuations, foresee potential deal turbulence, who will aggressively market your home to sell, and has the skill to counsel you through the process.

Mistake #10: Losing perspective.

You love your house. And you expect everyone else to love it too. It can hurt when a buyer doesn’t love it as much as you do. And it can even be offensive when a buyer makes an extremely low offer. But in the long run, it doesn’t matter what you paid for your home, how much you love it, or how much money you invested in renovations. The deciding factor is what a buyer thinks it’s worth. Save yourself some stress and heartache by keeping things in perspective. Like you, the buyer is just trying to get the best deal possible. It’s not personal.

At The Finigan Group we use intelligent strategies that get results. Over the years we’ve learned what works to help our clients win deals, regardless of market conditions. Our statistics prove this point. Our homes sell 3x faster and for 8 – 19% more than similar properties. Our experience, thoughtful tactics, and training benefit our clients’ bottom line. We can put our methodical system to work for you too. Contact us today for a no obligation, no BS consult on selling your North Carolina home.

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Home Ownership Education, Home Sellers and Buyers, Moving to Charlotte NC, Selling My House, Uncategorized

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Zillow Zestimates: How Accurate Are They?

Zillow Zestimates: How Accurate Are They?

In the world of real estate, there’s one topic that consistently ignites a spirited debate among buyers, sellers, and industry professionals alike — the accuracy of Zillow’s Zestimate. Is it trustworthy? Can it be relied upon to determine the true value of your home? Today, we’re going to delve into an unbiased analysis of Zillow’s infamous Zestimate, revealing whether it’s a tool you should be utilizing or not.

Our goal is to take a non biased look at Zillow’s Zestimate and identify if you can use it to accurately estimate your homes value.

Let’s unravel the mystery together, shall we?

Today, we’re going to embark on a two-part journey of discovery. First, we’ll unravel what the Zestimate truly is, and then, we’ll shed some light on the facts often hidden in plain sight. By the end, you’ll have insights you’ve probably never come across before. In this article, we’ll cover:

 

Homes For Sale in Charlotte, NC:

1. What is a Zestimate?

In simple terms, a Zestimate is Zillow’s estimated market value for a home. Zillow uses a sophisticated algorithm that considers a wide range of information to provide this estimate. The Zestimate is not an appraisal, but it can offer a starting point for understanding a home’s value.

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2. How is a Zestimate Calculated?

Zillow’s Zestimate algorithm uses a proprietary formula, which considers many data points. These can include physical attributes, such as square footage, number of bedrooms, and bathrooms, as well as location-specific elements such as proximity to amenities, neighborhood trends, and local market conditions. It also takes into account historical and current transaction data, like recent sales of similar homes in the same area.

However, it’s important to note that Zestimates don’t account for everything. They don’t consider certain elements, like recent renovations or unique features and interior finishes, as this kind of information might not be available in public records or reported to Zillow.

Obviously, the best way to get an accurate evaluation of your home’s value is to hire an appraiser or chat with an expert real estate agent in your area!

 

3. Zestimate’s Accuracy

Zillow has been transparent about the accuracy of their Zestimates, stating that it has a median error rate of roughly 2-3% for on-market homes. This means that half of the Zestimates are within 2-3% of the selling price, and half are off by more. The accuracy can vary depending on the location and the availability of data in a particular area. To judge Zillow Zestimate’s accuracy levels, there are two different categories of Active, or On-Market listings, and Off-Market listings.

The Active Listings Accuracy section are the homes that are currently listed online. Zillow breaks down the accuracy down by state, but it can be narrowed down to your specific city. Researching Charlotte’s data for homes that were listed online and sold, 78.6% of the time the Zestimate was within 5% of the sales price. 93.8% of the time the Zestimate was within 10% of the sales price.  According to that data, the values are pretty accurate between the Zestimate and the current list price of a home.

Comparing the Off-Market sales data, only 41.44% of the homes sold were within 5% of the Zestimate price. That’s 78% for active listings versus 41% off-market, which is a big difference!  Zillow is much less accurate when it comes to off-market homes than when it comes to active listings. 

Researching homes currently listed for sale in the Charlotte, NC market the Zestimate changes whenever the home is officially listed for sale.  For example, a home is currently on the market listed at $689,000 and the Zestimate is at $702,000, a difference of $13,000.  The Zillow Zestimate appears pretty accurate. When taking a closer look at the home value button on Zillow, it will take you down to a chart that shows a Zestimate chart over time. The Zestimate value shown on the example’s home right before it was listed was $509,000.  When the home was officially listed for sale, the value jumped up to $702,000!  Now, that’s a big difference!

Check out the video for several other examples of Zestimates before and after a home is listed in the active market and how they mimic the actual list price!

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4. How to Update Your Home’s Information on Zillow

The information that Zillow has on your home may be incorrect. There is a way you can update your information on Zillow to get an updated value on your home. Go to Zillow’s website and “Claim Ownership” of your address, verify ownership, and “Update Facts”.  Correcting the number of  bedrooms and bathrooms, square feet of your home, and other features will provide an updated Zestimate.  

Selling A House Shouldn’t be Stressful

There is a pro-active way to sell your home that gets results

5. The Role of Zestimates in Today’s Housing Market

In today’s digital-driven housing market, Zestimates play a significant role. They offer a quick, easy-to-access estimation of a home’s value. However, Zestimates are a starting point and not a definitive appraisal of a home’s value. They are a helpful tool but should be supplemented with professional appraisal, comprehensive market analysis, and expert real estate advice.

Zestimates are a valuable tool in today’s fast-paced, information-hungry real estate market. They provide homeowners and prospective buyers with an immediate, albeit rough, estimate of a property’s worth. But remember, while they are a good starting point, nothing beats the human touch and local market expertise that a professional realtor can provide.

6. What is Your Home’s true value?

If you’re curious on what your home’s TRUE value is? Want to know how much it could be worth on the market? Sign up for a free home evaluation today! Our expert team will provide you with an accurate and comprehensive report, giving you insight into the current market and helping you make informed decisions about your property. Sign up now and take the first step towards unlocking the TRUE potential of your home!

As your trusted realtor, I’m here to help you make the most of your assets and guide you on this rewarding journey. If you’re ready to explore the possibilities that your home’s equity offers, don’t hesitate to reach out.

Thank you for taking the time to read this article. I’m excited to assist you in unlocking the full potential of your home’s equity and creating a lasting legacy for your family.

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Phone:

704-631-3977

Email:

info@thefinigangroup.com

Visit Us:

3440 Toringdon Way, ste 205

Charlotte NC 28277

Home Ownership Education, Home Sellers and Buyers, Moving to Charlotte NC, Selling My House, Uncategorized

How do rich people become wealthy?  How do successful individuals become generationally wealth?

How do rich people become wealthy?  How do successful individuals become generationally wealth? Well, I was recently asked by a wise sage, "do you know how rich people become wealthy?"  Join Adam Kelly & I as we reveal how the wealthy build generational wealth!...

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How do rich people become wealthy?  How do successful individuals become generationally wealth?

How do rich people become wealthy?  How do successful individuals become generationally wealth?

How do rich people become wealthy?  How do successful individuals become generationally wealth? Well, I was recently asked by a wise sage, “do you know how rich people become wealthy?”  Join Adam Kelly & I as we reveal how the wealthy build generational wealth!

Today we will  walk you through the different ways that you’re able to utilize your equity to better your financial position, invest, and pay off debt. They will also discuss the different tools and methods of extracting wealth from your home’s equity. Here’s a few things that we will cover: 

In This Article We’ll Cover:

1. Ways to Use Your Home’s Equity to Build Wealth

2. Ways to Access Your Home’s Equity

3. How to Save Thousands on Your Mortgage

4. Private Mortgage Insurance

5. What’s Your Homes’ TRUE Value?

Homes For Sale in Charlotte, NC:

1. Ways to Use Your Home’s Equity to Build Wealth

 

Home equity is often the largest asset for many American families, yet many are unaware of the incredible opportunities to leverage this asset to build wealth. However, with the right approach, your home equity can work for you and your family to unlock the potential of your property’s value.

One of the most effective ways to increase your overall wealth while still enjoying the benefits of homeownership is by building your home equity. With refinancing, you can access the equity in your home and utilize it to pursue a variety of investment strategies to increase your total wealth. Whether you want to invest in your business, pay off debts, or make home improvements, home equity refinancing can be an excellent option for you.

By unlocking the value of your home equity, you can invest in strategies that align with your financial goals, which could potentially help you build significant wealth over time. With careful planning and expert guidance, you can make the most of your home equity to create a stronger financial future for you and your family. Here’s a few of the ways you can use your equity to better your financial position:

1. Paying off credit card bills: The average credit card APR is now about 16%, so using a home equity loan to pay off high-interest credit card bills can be smart.

After all, some banks offer home equity loans with rates around 6%. If you transfer high-interest credit card bills to a home equity loan with a rate that’s less than a third of what you’re paying on your credit cards, you could save money and pay down debt faster.

2. Consolidate other debt: While credit card debt is one option for debt consolidation, don’t forget you can use home equity to consolidate other types of debts. The key is choosing debts that have a higher interest rate than you could get with a home equity loan.

If you have a high-interest personal loan, auto loan, or private student loan and have a lot of equity in your home, for example, using your home equity could be smart. Consolidate all your debts with a home equity loan with low or no fees and a lower APR, and you could save big over the long haul.

3. Home improvements: Did you know that you can use your home equity to increase the value of your property and build your wealth? Many homeowners are leveraging this opportunity by using home equity loans to make important home improvements or upgrades.

According to Remodeling Magazine, the top three improvements that yield the highest return on investment are garage door replacement (93.8% cost recouped), manufactured stone veneer (92.1%), and a minor kitchen remodel (72.2%). By investing in these upgrades, you can boost the value of your property and enjoy a higher return on your investment.

But it’s not just about the numbers – any remodeling project can pay off if you personally find value in it. If you’ve always wanted a new kitchen and need to borrow to make it happen, a home equity loan is a smart and affordable option. And if you qualify according to IRS rules, you can even deduct the interest on home equity loans when the funds are used to “buy, build, or substantially improve the taxpayer’s home that secures the loan.”

4. Home additions: Are you running out of space in your beloved home? Well, don’t let limited square footage hold you back! With home equity, you can add an addition to your property and increase its value while also avoiding a pricey move.

Whether you need a new family room, bathroom, mudroom, or bedroom, adding some extra space could be just what you need. And the good news is that you don’t have to dip into your personal savings to make it happen. A home equity loan is an affordable and accessible option that can help you fund your dream addition.

By expanding your living space, you’ll not only enhance your daily life but also increase the overall value of your property. And let’s face it – who doesn’t want a little extra room to breathe and relax in their own home?

5. Down payment for investment property: Looking to level up your real estate game and become a landlord or commercial property owner? Well, get ready to dish out a hefty down payment! But before you start dipping into your personal savings, there’s a smarter way to get the cash you need – with home equity.

By tapping into the value of your property, you can secure a home equity loan with a competitive interest rate, allowing you to pursue your real estate dreams without breaking the bank. And let’s be real – who wouldn’t want to make passive income from a rental property or have a commercial space to call their own?

With a home equity loan, you can unlock the value of your property and use the funds to invest in real estate ventures that align with your financial goals. And since home equity loans are secured by your property’s value, you’ll likely qualify for a more affordable interest rate than other types of loans.

6. Starting a business: Ready to turn your entrepreneurial dreams into reality? Look no further than your own home! By tapping into your home equity, you can access the funds you need to start a business – whether that means opening a franchise or starting your own company from scratch.

With a home equity loan, you can get a sizable chunk of money upfront without having to drain your personal savings or take out an expensive small business loan. And let’s be real – every entrepreneur knows that startup costs can quickly add up, so having access to affordable funding is crucial.

And with careful planning and expert guidance, you can use your home equity to start a successful and thriving business. So don’t let a lack of funding hold you back from pursuing your entrepreneurial dreams.

7. Use for an emergency:When life throws you a curveball, having a backup plan can make all the difference. That’s where home equity comes in handy. While home equity loans offer a fixed lump sum, fixed interest rate, and fixed monthly payment, a home equity line of credit (HELOC) works like a credit card, giving you the flexibility to borrow against your equity as needed. 

With a HELOC, you can rest easy knowing that you have a financial safety net to fall back on in case of emergencies. Whether it’s unexpected medical bills, a job loss, or a health scare, a HELOC can provide you with the funds you need to weather the storm.

And the best part? If you don’t use your HELOC, there’s no need to worry about repayment. Plus, since any cash you borrow is secured by the equity in your home, you can enjoy much lower rates than traditional credit cards or loans.

Of course, it’s always best to have an emergency fund in place, but a home equity loan or HELOC can be a reliable backup plan if you don’t yet have one. Just be sure to compare HELOCs and watch out for fees to ensure you get the best deal.

Home equity is a powerful asset that many families underestimate when it comes to building wealth. By refinancing and unlocking the value of your property, you can use your home equity to pursue various investment strategies. Whether it’s paying off credit card bills, consolidating debt, making home improvements or adding an addition to your home, you can use your home equity to increase your wealth and financial stability. You can also tap into your home equity to fund your real estate ventures, start your own business or have a financial safety net in case of emergencies. With careful planning and expert guidance, home equity can be a valuable tool for creating a stronger financial future for you and your family. 

 

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2.  Ways to Access Your Home’s Equity:

Now, how do we access your home’s equity? There’s a few popular methods for tapping into the butt load of cash you’re currently sitting on: cash-out refinancing, refinancing, and Home Equity Lines of Credit (HELOCs). By understanding these options, you can make informed decisions that best suit your financial goals, whether you’re upgrading your living space, managing debt, or embarking on new endeavors. 

 

1. Cash-out Refinancing: Sail Away with Extra Cash Cash-out refinancing is like discovering a hidden island filled with gold. You replace your current mortgage with a new loan for more than you owe on your home, and then pocket the difference. It’s a popular choice for homeowners looking to access their equity while potentially lowering their interest rate or changing their loan term.

Advantages:

1. One loan to manage: By consolidating your mortgage and home equity, you’ll only have one monthly payment to worry about.

2.Tax benefits: In some cases, the interest you pay on a cash-out refinance could be tax-deductible.

Disadvantages:

1. Closing costs: Just like with your original mortgage, you’ll need to cover closing costs, which can be 2-5% of the loan amount.

2. Long-term commitment: If you extend the loan term, you might end up paying more interest over time.

2. Refinancing: Smooth Sailing to a Better Mortgage Refinancing is like swapping your old rowboat for a shiny new yacht. It involves replacing your current mortgage with a new one, typically to secure a lower interest rate, reduce your monthly payments, or change your loan term.

Advantages:

1. Save money: Lowering your interest rate can save you thousands over the life of your loan.

2. Flexibility: You can choose a new loan term that better suits your financial needs.

Disadvantages:

1. Closing costs: Just like with cash-out refinancing, you’ll need to pay closing costs on a new loan.

2. Time-consuming: The refinancing process can take several weeks or even months to complete.

3. HELOCs: Float on a Flexible Line of Credit A Home Equity Line of Credit (HELOC) is like having a trusty life raft on hand. It’s a revolving line of credit that uses your home as collateral. You can borrow against your home’s equity, repay the funds, and borrow again as needed during the draw period, usually 5-10 years.

Advantages:

1. Flexibility: You only borrow what you need, when you need it, making it perfect for ongoing expenses or projects.

2. Interest-only payments: During the draw period, you may have the option to make interest-only payments, keeping monthly costs low.

Disadvantages:

1. Variable interest rates: HELOCs typically have variable interest rates, meaning your payments could rise if rates increase.

2. Risk of foreclosure: Failing to repay your HELOC could result in the loss of your home.

Unlocking your home’s equity can be a fantastic way to achieve your financial goals, but it’s essential to weigh the pros and cons of cash-out refinancing, refinancing, and HELOCs. Consider consulting a financial advisor or mortgage professional to help you decide which option is the best fit for your unique circumstances. With the right strategy, you’ll soon be sailing the high seas of financial freedom!

Selling A House Shouldn’t be Stressful

There is a pro-active way to sell your home that gets results

3. How to Save Thousands on Your Mortgage:

 

There is a simple yet powerful strategy to save you tens of thousands of dollars: paying a little extra towards your mortgage each month. This small step can save you thousands of dollars over the life of the loan and help you become mortgage-free sooner.

When you pay more than the required monthly payment, the extra amount goes directly towards the principal balance of your loan. This reduces the overall balance and, in turn, the interest accrued on that balance. The benefits are twofold: you’ll pay less interest over time and shorten the term of your mortgage.

Let’s illustrate this with an example. Imagine you have a 30-year mortgage for $250,000 at a 4% fixed interest rate. Your monthly principal and interest payment would be approximately $1,193. If you were to pay an additional $100 per month, you would save over $26,000 in interest and shave off more than four years from your loan term!

If you’re considering this approach, check with your lender to ensure there are no prepayment penalties and confirm that the extra payments will be applied to the principal. You can also use online mortgage calculators to help visualize the long-term savings this strategy offers.

By consistently paying a little extra each month, you’re investing in your financial future. The thousands of dollars saved in interest can be redirected towards other financial goals, such as retirement, education, or home improvements.

 

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4. Private Mortgage Insurance 

Private Mortgage Insurance (PMI) is an insurance policy that protects lenders from potential losses if a borrower defaults on their mortgage. It’s typically required when a borrower puts down less than 20% on a conventional home loan. PMI reassures lenders, making it possible for more people to qualify for mortgages with smaller down payments.

The cost of PMI varies based on the size of your down payment and credit score, and it’s usually added to your monthly mortgage payment. The good news is that PMI isn’t permanent. There are several ways to remove it:

1. Automatic cancellation: Under the Homeowners Protection Act, lenders must automatically cancel PMI when your loan balance reaches 78% of the original property value, provided you’re current on your payments.

2. Request cancellation: Once your loan balance falls to 80% of the original property value, you can request PMI cancellation in writing. Your lender may require a home appraisal to verify the value.

3. Refinancing: If your home has appreciated in value or you’ve made significant improvements, you might be eligible to refinance your mortgage without PMI, provided your new loan balance is 80% or less of the home’s current value.

Keep track of your mortgage payments and home’s value to ensure you’re not paying PMI longer than necessary. Removing PMI can save you money, allowing you to reach your financial goals faster.

Selling A House Shouldn’t be Stressful

There is a pro-active way to sell your home that gets results

5.  What’s Your Homes TRUE Value?

 

If you’re curious on what your home’s TRUE value is? Want to know how much it could be worth on the market? Sign up for a free home evaluation today! Our expert team will provide you with an accurate and comprehensive report, giving you insight into the current market and helping you make informed decisions about your property. Sign up now and take the first step towards unlocking the TRUE potential of your home!

 

 

In conclusion, the secrets of the top 1% are within your grasp. By leveraging your home’s equity and utilizing strategies like cash-out refinancing, HELOCs, and real estate investments, you can create generational wealth for your family. We hope this article has inspired you to take action and explore the possibilities that your home’s equity offers.

As your trusted realtor, I’m here to help you make the most of your assets and guide you on this rewarding journey. If you’re ready to explore the possibilities that your home’s equity offers, don’t hesitate to reach out.

Thank you for taking the time to read this article. I’m excited to assist you in unlocking the full potential of your home’s equity and creating a lasting legacy for your family.

 

Sign Up To Our News Letter Below

So you don’t miss any of the most up-to-date info 

On the Greater Charlotte Area

* indicates required
Let’s Connect Today!

Phone:

704-631-3977

Email:

info@thefinigangroup.com

Visit Us:

3440 Toringdon Way, ste 205

Charlotte NC 28277

Home Ownership Education, Home Sellers and Buyers, Moving to Charlotte NC, Selling My House, Uncategorized

How do rich people become wealthy?  How do successful individuals become generationally wealth?

How do rich people become wealthy?  How do successful individuals become generationally wealth? Well, I was recently asked by a wise sage, "do you know how rich people become wealthy?"  Join Adam Kelly & I as we reveal how the wealthy build generational wealth!...

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Mecklenburg County Property Tax Value Skyrockets! What does this mean for you?

Attention homeowners of Mecklenburg County, NC!

 

Brace yourselves, because changes are coming to your property taxes. If you own property in Mecklenburg County, you may have already received a notice in the mail regarding your new property value.  That’s because the county is in the midst of re-evaluating its property taxes this year.  Mecklenburg began mailing out notices to over 400,000 home owners on March 17th.

This process has significant implications for homeowners in the area, and it’s important to understand what’s happening, why it’s happening, and what you can do to prepare. In this blog, we’ll dive into the details of Mecklenburg County’s Property tax re-evaluation and provide valuable insights for homeowners who want to stay informed and ahead of the game. So buckle up and let’s get started!

In This Article We’ll Cover:

1. Why’s This Happening?

2. Lower Value Homes See Highest Tax Value Increase

3. How the New Tax Rate Will Be Determined

4. City’s & Towns Set Tax Rate

5. Do You Have Questions? Here’s where you can get answers!

6. How To Appeal Your Revaluation

7. Tax Relief Options

8. Your Homes TRUE Value

 

Homes for Sale in Charlotte, NC:

1. Why’s This Happening?

North Carolina law requires all counties to conduct a property revaluation at least every eight years. Mecklenburg County currently conducts revaluation every four years. Don’t be surprised to find some bigger numbers compared to the last time your property was valued in 2019.

The property revaluation is the culmination of more than 2 years of work. The Assessor’s Office monitors market data to accurately determine the market value of all properties. Staff visit and observe properties to verify characteristics, compare similar property sales and consider improvements or changes made. Revaluation captures these changes in value for property tax purposes. Properties are revalued to ensure assessed values are based on the current market and establish equalization for property owners throughout Mecklenburg County.

Nearly all of the county’s more than 400,000 residential properties saw an increase in market value. The value of some parcels increased more than three-fold, according to a Charlotte Observer analysis of those parcels

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2. Lower Value Homes See Highest Tax Value Increase

The median value of real estate in Mecklenburg County is up by about 51% from 2022That includes a 58% increase for all residential properties and 41% for commercial. People with homes priced on the lower end of the spectrum should expect to see the biggest increases to their tax bills. That’s because less expensive homes jumped the most in value over the past four years. Neighborhoods to the north and west of uptown are expected to see some of the highest property value gains. 

 

 

 

 

But higher values don’t necessarily mean your property tax bill will go up. Local governments will set tax rates this year, at which point property tax bills will be sent out. You don’t need to wait on your letter in the mail to check your updated tax value,  Click Here  to view your updated value.

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3. How The New Tax Rate Will be Determined

 

The tax rates set by local governments could be lowered in favor of a revenue- neutral rate (the rate needed to bring in the same amount of money as the previous years budget). By law, local governments are required to publish the revenue-neutral rate, but can choose to set it higher or lower.  

 

Mecklenburg County commissioners will consider the new property values when setting the new rate. After making the new revenue neutral rate public, the commissioners will determine what rate must be set to bring in enough revenue to pay for public services without overly burdening residents.  Commissioner Leigh Altman said she considers three things hone setting the rate: 

1. Fairness

2. Those already tax burdened 

3. Quality infrastructure and services 

That rate applied to property owners’ new value will determine the amount owed on tax bills this year.  Overall, property owners shouldn’t be surprised to see an increase in their tax bill.  

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4. City & Towns Set Tax Rates

If you live in the city of Charlotte or a town in Mecklenburg County, those boards will set a municipal tax rate, too.

Things like inflation, recession fears and needs for city and county services and infrastructure will impact leaders’ decisions when setting the tax base.

City Councilman Ed Driggs said inflation also has resulted in inflated incomes. Both the city and county gave their employees pay raises in last year’s budget. Social Security fixed incomes increased by 8.7% to adjust for the cost of living in 2023.

“People have more capacity to pay property taxes as well,” Driggs said.

5. Do you have Questions? Here’s Where You Can Get Answers 

Staff from the Assessor’s Office are ready to answer questions and assist all property owners. Owners can call 980-314-4226 or email AssessorQuestions@meckNC.gov

In addition, the Assessor’s Office has scheduled two Property Tax Resource Fairs, to speak with residents about their new values and options for property tax relief for eligible owners.


 

 

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6. How to Appeal Your Revaluation 

Property owners who believe the new assessed value doesn’t align with what it could sell for have two options: an informal review and a formal appeal. An informal review allows the owner and assessor to review the revaluation notice together and correct errors without an appeal. However, a formal appeal is sent for review by the Board of Equalization and Review (BER), a citizen volunteer board that listens to the appeals.

If you are a property owner and you would like to appeal the new assessed value, you can do this on the same page where you locate your new property revaluation.

Overall, Mecklenburg County’s property tax re-evaluation is a necessary process that helps ensure that homeowners are paying a fair amount in property taxes based on the value of their property.  By understanding the process and taking proactive steps, homeowners can be better prepared for any potential changes to their property tax bill.

 

7. Tax Relief Options 

As a result of the revaluation, some property owners in Mecklenburg County may experience an increase in their property taxes. The county government has taken steps to make this process as transparent as possible, providing property owners with information on how their assessments were calculated and offering opportunities for appeals.

 

However, for those who may experience an increase in their property taxes, the county has also introduced several tax relief options to help alleviate the financial burden. These include property tax exemptions for seniors, the disabled, and veterans, as well as programs that provide assistance to those who are struggling to pay their property taxes. Please Click Here for a complete list of the different tax relief options available. 

8. What’s Your Homes TRUE Value?

 

If you’re curious on what your home’s TRUE value is? Want to know how much it could be worth on the market? Sign up for a free home evaluation today! Our expert team will provide you with an accurate and comprehensive report, giving you insight into the current market and helping you make informed decisions about your property. Sign up now and take the first step towards unlocking the TRUE potential of your home!

 

 

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The Truth About Solar Panels and Home Sales in North Carolina

The Truth About Solar Panels and Home Sales in North Carolina

If you’re anything like me not a day goes by that you don’t get a call, text, email, piece of mail, or a door knock from a solar salesman at least once a day. If not, multiple times a day! You might be thinking: Is solar actually a good thing if I live in Charlotte, or in the Carolinas in general?  Well, thats exactly what we’ll review today! Our goal is to give you a little bit of direction if you’re thinking of investing in solar panels.

This article is your ultimate guide to navigating the factors you should consider before making a decision. We’ll explore everything from the cost, pros and cons, and some myths and truths. I’ll also give you my perspective as a real estate agent on if you should move forward and get solar. By the end of this article, you’ll have a better understanding of the benefits and potential drawbacks of investing in solar panels, allowing you to make a decision that aligns with your needs and priorities. In this article we’ll cover: 

Homes for Sale in Charlotte, NC:

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1. Cost of Solar Panels in North Carolina:

Factors influencing cost of solar panels: home age, size, and sun coverage. Solar panel costs range from $15,000 to $57,000, with an average of $32,500 in North Carolina.   

Cost of Solar

If you’re considering investing in solar energy, the first question that comes to mind is probably whether it will save you money in the long run. The answer depends on a few factors, such as where you live, the age and size of your home, and the amount of sunlight it receives. But before you dive into the pros and cons of solar ownership, there’s one important thing to consider: timing.

In North Carolina, the average time it takes to recover your initial investment in solar panels is 13.5 years. So, if you plan to move in the near future, it may not be the best time to invest in solar. However, if you plan on staying in your home for a long time, then solar panels could be a wise investment.

When deciding whether to invest in solar, it’s important to think about how long you plan on owning your home. If you’re planning to move soon, it may not be worth the investment, as you may not have enough time to recoup the cost of installation. On the other hand, if you plan on staying in your home for the long term, solar panels can save you money on your energy bills and increase your home’s value.

So, if you’re in it for the long haul, solar panels can be a great investment. They’ll help you save money on your energy bills and reduce your carbon footprint, while also increasing the value of your home. However, if you’re planning to move in the near future, it may be best to hold off on investing in solar until you’re settled in your next home. 

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2. Pros of Investing in Solar Panels

 There are may positives to consider when you look into solar panels. Here’s just a few: 

1. 30% Federal Grant: You get a credit of 30% of the initial cost of the solar panels on your taxes. This can help you offset some of the costs involved in solar. 

2. Selling Unused Energy: You may be able to sell your unused energy back to the grid.  

3. Reduce Electric Bill: You can greatly reduce your electric bill! But remember, Duke Energy charges a fee to be connected to the “grid.” This could run you about $30 a month, no matter what. So you can never eliminate your electric bill, without disconnecting from the “grid.”

 

Solar Panels

3. Does Investing in Solar Panels Add to Your Homes Value?

Now, if you add solar to your home, is it an actual “amenity?” Is it something thats going to increase the value of your home? Well, that depends! Before we identify if solar panels add value, lets review the 4 ways you can get solar panels on your home: 

1. You pay cash for them. 

2. Finance the purchase. 

3. You can lease them

4. Buy a home with solar installed

Selling your home, with financed solar panels:

If you financed your solar panels, you likely have a lien on your home for the balance of your panels. This means that when you sell your home, the buyer’s mortgage company may require the panels to be paid off at closing. But what if you want the buyer to assume your solar lien?

Well, it’s not that simple. Some financing companies do not allow the lien to be transferred to a new buyer, leaving you with the balance to pay off at closing. And even if you can transfer the lien, the buyer may not want to assume the debt obligation.

Why, you ask? It could be that they don’t see the value in solar panels or just don’t want to pay for them. As the seller, you may find yourself not only trying to sell your home but also selling the idea of solar panels to potential buyers. And if the buyer perceives the value of the panels as less than your balance, you may end up working to pay off the remaining debt on your own.

But that’s not all. The buyer may not be able to assume the debt obligation and still qualify to purchase your home. This means you may have fewer potential buyers, which could affect your bottom line.

So, what should you do if you’re thinking of selling a home with solar panels? First, read your financing paperwork carefully to see if you can transfer your lien balance to the buyer. Then, consider the potential buyer’s perspective and think about how you can make the solar panels a selling point rather than a liability. Finally, it’s important to work with a professional realtor who has experience selling homes with solar panels. They can help you navigate the potential obstacles and ensure a smooth and successful sale. With the right strategy and the right guidance, you can sell your home and your solar panels with confidence.

 

Selling your home, with leased solar panels:

So, you’ve leased solar panels for your home and are now looking to sell. But wait, there’s a catch. You may not be able to transfer your solar panel lease to the new buyer. This can create a potential headache for your prospective buyer who may not want to assume the lease, or they may not be able to qualify for a mortgage with the added monthly obligation.

Even though the solar panel lease is technically a utility bill, many lenders see it as a monthly debt obligation, which could negatively affect the buyer’s debt-to-income ratio and potentially blow up the deal. This could reduce your pool of buyers, which could affect your home’s sale price and lengthen the time it takes to sell.

To make matters worse, some solar companies do not allow the lease to be assumed by a new buyer. This means that the lease will need to be paid off before you can sell the home. This can be a costly endeavor, and it’s important to consider this before you put your home on the market.

Before making any decisions, consult with a real estate professional who has experience selling homes with leased solar panels. They can help you navigate the potential obstacles and ensure a smooth and successful sale. With the right strategy and the right guidance, you can sell your home with leased solar panels without any headaches.

 

Selling your home: Can you just remove the panels?

I’m sure many of you are saying “well, I’ll just remove my panels.” You may be tempted to just remove the panels and call it a day, but it’s not that simple. You could run into some unique obstacles that may make you rethink your plan.

First and foremost, removing your solar panels could make your warranty null and void. You’ll need to have the solar company’s team remove the panels, which could come with its own fees. You’ll also need to identify transportation and storage, which could be an added expense. These costs can add up quickly, and you’ll want to consider them carefully before making any decisions.

But that’s not all. Removing your solar panels could also damage your roof. This could be a costly issue that needs to be addressed before you can sell your home. You’ll want to make sure that the roof is repaired properly to prevent leaks and other potential problems. Once again, the cost of repairing the damage is something you’ll want to consider before making any decisions.

So, while removing your solar panels is a viable option for selling your home, it’s not without its potential obstacles. Before making any decisions, consult with a real estate professional who has experience selling homes with solar panels. They can help you navigate the potential obstacles and ensure a smooth and successful sale. With the right strategy and the right guidance, you can sell your home with solar panels without any headaches.

Selling A House Shouldn’t be Stressful

There is a pro-active way to sell your home that gets results

Solar panel salesmen often tout the benefits of solar energy, claiming that investing $40k in solar will increase your home’s value by $40k. But is this really true? Let’s take a look at recent home sales in Mecklenburg County and compare homes with solar panels to those without.

Surprisingly, the price per square foot of homes with solar panels is actually the same as those without. So, while buyers may appreciate solar panels, it’s unlikely that they’ll be willing to spend significantly more for your home over someone else’s.

Sure, solar panels are like having really nice appliances or a pool. They’re things that buyers are going to appreciate and enjoy. But, they’re not going to cause buyers to break the bank to purchase your home.

In fact, appraisers won’t give you a significant bump in sales price for your solar panels. Even if they wanted to, they would need a comparable property that sold significantly higher than other comps, with nothing else being different than the solar panels. And the reality is that there aren’t many solar panel comps out there, so the odds of this happening are slim.

But that’s not to say that solar panels aren’t a valuable investment. They can help you save money on your energy bills and reduce your carbon footprint. Plus, they’re a selling point that can help set your home apart from others on the market. Just don’t expect them to be the sole reason for a higher sales price.

 

If you’re considering investing in solar panels, it’s important to do so for the right reasons. Talk to a professional who can help you navigate the potential benefits and drawbacks, and make an informed decision. With the right strategy and the right guidance, you can make the most of your solar investment and sell your home with confidence.

 

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Selling A House Shouldn’t be Stressful

There is a pro-active way to sell your home that gets results

Investing in Solar? Keep these in mind:

1. Warranty: Read the warranty the solar company offers. The warranty’s are not always the same. If you invest in solar, make sure you hire a company that stands behind their quality craftsmanship and their product for 15, 20 and 30 years. 

2. Age of your roof: Typically you want to avoid putting solar panels on a roof that has less than 5 years of life left. 

 

Who Should Invest in Solar Panels?

There’s plenty of people who would greatly benefit from investing in solar panels.

Here are a few:

1. If you’re looking to stay in your home for 13+ years.

2. If you’re looking to be on a fixed income and want to hedge yourself against inflation and future energy costs.

3. If you’re trying to get off the grid.

4. If you’re looking for a good back up in case of storms.  

5. If you’re trying to make a difference in the green movement.

 

 

solar panels in North Carolina

There are pros and cons to every decision when it comes to solar panels. Whether you’re considering installing solar panels to save money on your energy bills and reduce your carbon footprint, or you’re looking to sell a home with solar panels, it’s important to understand the unique challenges that come with them.

Many solar salesmen only focus on the benefits of solar panels, but the reality is there are potential obstacles that you need to be aware of. From dealing with solar panel liens and leases to understanding the impact of solar panels on your home’s value, there’s a lot to consider.

If you’re looking to sell a home with solar panels, it’s important to partner with a real estate agent who has experience with these types of properties. They can help you navigate the potential pitfalls and ensure a successful outcome.

No matter what your goals are, a professional real estate agent with experience in solar properties can provide you with the information, guidance, and support you need to make the most of your investment. So, whether you’re installing solar panels or selling a home with solar panels, contact a real estate agent who can help you make an informed decision and achieve your goals.

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Selling your home: How much does it cost to sell a house? In North Carolina (2023 Update)

Selling your home: How much does it cost to sell a house? In North Carolina (2023 Update)

How much does it cost to sell a house?  When selling a house, the sale price does NOT necessarily mean that’s what you’re putting in your pocket. 💰 Let’s talk about the REAL cost of selling your home.

How Much Does It ACTUALLY Cost To Sell Your House? 

If you’re considering selling your home, listen up! In this comprehensive video + Blog, you’ll learn about all the specific costs involved in selling your house, including real estate agent commissions, closing costs, transfer taxes, escrow fees, title insurance, HOA fee’s and more.

With this blog + video’s accurate information and useful home selling tips in your arsenal, you can be better prepared when it comes time to sell your home. Closing costs for sellers might be higher than you think, so it is important to be prepared and budget for these expenses.

Every home sale is different but these are the typical things a seller pays for when selling a house. Some of these expenses will apply to you, and other’s may not. It really boils down to your timing and your specific scenario. Here’s a rundown of typical seller costs, and about how much they will run you:

Homes For Sale in Charlotte, NC:

Selling A House Shouldn’t be Stressful

There is a pro-active way to sell your home that gets results

Cost Before You List

1. The Costs before you list

Did you know that some of the expenses that you will incur as a home seller will actually occur before you actually list your home for sale. The reason is, you will need to prep your home, if you want to get TOP DOLLAR for your home. The first impression a buyer has of your home really matters. You want to make sure your home has that “WOW” factor. 

The goal is to make it shine inside and out! Here are a few tips:

1. Hire a professional cleaner, or deep clean your home: Make sure to work this in your budget. Remember, the price will vary based on your houses square feet along with how much work it needs 

2. Curb appeal: You want to make sure your home has a very strong curb appeal. After all, this is the buyers first impression of your home. So, you want to make sure you spend a bit of time and money ensuring your home looks as good as possible.

3.  Possible repairs: You want to budget for any potential repairs that you have possibly been putting off. The repairs that you know you really need to do before putting the home on the market. Even a few affordable ways to boost your property’s appeal, like cleaning the windows and touching up the walls, baseboards, and trim around the home. This might be better than selling your home as-is.

Possible Renovations to Maximize Your Profit

Before you sell, you might be tempted to complete a project that seems likely to increase the value in a buyer’s eyes. Some renovations can recoup the majority of their value when it’s time to sell. Click the link above to see the 6 renovations that will INSTANTLY increase your home’s value.

Please note, one of the most common mistakes I see from home sellers is spending money on the wrong improvements before getting a Realtor involved. We always recommend consulting with your trusted Realtor before completing any renovations (for the sake of selling). 

How To Best Prepare Your Home To Maximize Your Profit

If you are interested in learning more how to best prepare your home to hit the market, we have put together a video on the *10 most important steps to prepare your home for the market. *  Click the link and learn how to best prepare your home for sale!

Also, feel free to click here, to download our FREE Home Seller Prep Guide! This guide will make sure you are fully prepared to hit the market.  

Selling A House Shouldn’t be Stressful

There is a pro-active way to sell your home that gets results

Repairs to your home

 2. Home Repairs 

I know you’re saying, “Hey, you already mentioned repairs before listing the home.” The fact is depending on the market conditions, your home’s condition, the buyers inspection report, and negotiations you may be looking at completing a few more repairs before closing as well.

Home Inspection 

If the buyer’s home inspection uncovers big issues, such as a damaged roof or bad plumbing leaks, you might have to pay to fix them in order to close the deal. You may also be able to cut the buyer a check to cover the repairs, rather than completing them. Big repairs can set you back financially, so be prepared before you decide to sell, especially if you anticipate trouble along these lines. The older your home is, the more likely there may be hidden defects, or issues with the home. 

Your trusted Realtor will be able to help advise you on how to negotiate any requested repairs, and what’s typical in your market.  

Realtor fees

3. Realtor Fee’s

Typically, the seller is responsible for paying the Realtor’s fee whenever selling a home. This includes the listing agent (representing the seller) and the buyer agent (representing the buyer). Each real estate agent is responsible for setting their own fee’s, so this can vary based on the agent you choose to work with. 

Before choosing an agent you really want to make sure you know what their realtor fee is and what exactly you can expect them to do for that fee.  

How To Choose The Right Agent

Not all Realtor’s are created equal, every individual agent has their own process, marketing plan, and success rate. Choosing the wrong agent could lead you to leaving tens of thousands of dollars on the table. We always recommend interviewing at least 3 real estate agents, to ensure you have enough information, viewpoints, and data to choose the right agent. 

If you are considering selling your home, make sure you choose the best Realtor. Watch this video to make sure you are asking your potential realtor the RIGHT questions:  10 Questions You Must Ask Your Realtor Before Hiring Them. 

Cost of selling a house. Seller Concessions

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4. Seller Concessions 

Buyer’s sometimes request concessions from the seller, which essentially means that you help cover the buyer’s closing costs. For example, you might agree to contribute a portion of your sales price towards appraisal, title insurance, and origination fee. This is paid out of the seller proceeds at closing and will depend on the negotiations between the buyer, seller, and Realtor’s involved, along with the state of the real estate market.

It All Comes Down To Negotiation

You definitely don’t have to agree to this. Especially if your area is a seller’s market. If it’s a buyer’s market, seller concessions can help make a difference in getting a deal to the finish line. Also, even if you’re willing to make concessions, there are limits based on the type of mortgage your buyer is using and how much they are contributing for a down payment.

Cost of selling a house.  Closing costs

5. Closing Cost’s

These are the fee’s that the seller will see whenever selling a home. Closing costs can vary based on the state you are selling a home in. Here in the Carolina’s you can expect a few fees:

1. Attorney Fee: The buyer and seller will both have an attorney fee. They can choose to use the same closing attorney or choose separate closing attorney’s. Attorney fees will vary based on your location and the attorney you choose. The seller fee, in the greater Charlotte area, is typically around $400 to $500.

2. Pro-Rated Taxes: Property taxes are paid in the arrears (meaning you pay for the property tax for the current year at the end of the year). At closing, the attorneys will pro-rate the property tax owed, the seller will pay a portion of the property taxes, based on how long they owned the home that calendar year. This can show up in a few different ways, based on what time of year you close and if you have already paid the property taxes. The county usually sends out the tax bill around August, however, it is not due until the end of December. 

              • If you are closing before August (or before the current year’s tax bill has been released), then the closing attorneys will use the previous year’s tax bill to estimate what this years taxes due will be. In this case, at closing the seller will pay the buyer directly for their portion of taxes. The buyer will then be responsible for the entire tax bill at the end of the year (when it is released).
              • If you are closing after August (or after the current year’s tax bill has been released) then the closing attorney’s will use the current tax bill to pro-rate taxes. If you are closing after August and the taxes have not yet been paid, then you will credit the buyer for the portion of property taxes you owe. If they have been paid for, then the buyer will credit you back for the portion of property tax they would owe for the rest of the year (where they will be the owner).

3. Recording Fee: The seller will pay to record the deed with the state. This is usually $40-55.

4. Deed Stamps/ Excise tax: We all know that Uncle Sam has to get his slice of the pie. There is usually some sort of tax levied on the seller whenever selling a home.  The amount, and what it’s called, is determined on the state you are selling your house in. 

              • North Carolina: If you are selling a home in North Carolina, it’s called Excise tax. You will owe $1 for every $500 your home sells for. This is due out of the seller proceeds at closing 
              • South Carolina: If you are selling a home in South Carolina, it’s called State Deed Stamps. You will owe $3.70 for every $1000 your home sells for. This is due out of the seller proceeds at closing. 

How To Estimate Your Closing Cost Estimate

You want to make sure you budget the costs above as well. The “rule of thumb” is to budget 1% of your sales price for the sellers closing costs. Whenever you meet with your trusted real estate agent, they will be able to complete an estimated seller net sheet, to make sure you know exactly what to expect. 

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Cost of selling a house. Home warranty

6. Home warranty

In some cases, you may find a buyer is requesting for you to pay for a home warranty. This protects the buyer, after closing, for any large expenses, systems, and appliances. This is 100% negotiable and will be determined by both the seller the buyer and the real estate agent. The market conditions in your area can be a large factor in this as well.  

Cost of a Home Warranty

The cost of a home warranty can vary on the level of protection, the size of the home, and the amount of items the buyer is requesting to be covered (i.e pools, etc). The annual premium for a home warranty in North Carolina averages $588 for a single family home, according to Review Home Warranties. 

 

Cost of selling a house. HOA fees

7. HOA Fees

Do you live in a community that has a HOA that empose’s fees whenever selling a property?  If so, be sure to understand the costs and add them to your budget. These fee’s can include:

1. Capital Improvement fees: Capital Improvements Fee means that one time, nonrefundable fee which may be used by home owners for the community to fund community refurbishment costs, capital improvements and/or capital reserves.

2. HOA transfer Fees: The HOA transfer fee covers all costs that the HOA will incur when transferring the ownership records from the seller to the buyer. These are charges associated with preparing and distributing documents, updating names in databases, changing security codes and amenities passes, and other administrative costs.

3. Document Prep Fees: Attorneys need to acquire certain documents from the HOA before closing, and some HOA’s charge the seller to send these documents to the attorney.  

If you have any outstanding fine’s or HOA dues, you will also need to budget for those. The closing attorney will be able to gather this information through the closing process.  However, if you do not know whether or not your HOA has any fee’s on selling a property, its easy to find out! All you have to do is contact your HOA community manager, and they will be able to help you identify any possible fees.

Selling A House Shouldn’t be Stressful

There is a pro-active way to sell your home that gets results

Cost of selling a house. Mortgage Expenses

8. Mortgage Expenses 

 

Now, we all know we have to pay the lender back. All liens on the property will need to be paid off at closing. You want to make sure you read your mortgage documents carefully to identify any hidden fees:

        • Prepayment penalty  Although less common, some mortgage loans may include a prepayment penalty. A prepayment penalty is a fee that some lenders charge if you pay off all or part of your mortgage early. If you have a prepayment penalty, you would have agreed to this when you closed on your home. Not all mortgages have a prepayment penalty.
        • Accrued Interest on Mortgage – Mortgage interest is paid in arrears. You may have paid your mortgage prior to settling on the sale of your house, but interest is also due for the days between your mortgage payment due date and the closing of the sale. The title company usually includes several days of interest in your payoff summary, with any over payment refunded after closing.
        • Lien Processing fee – It takes several weeks for a lender to file the paperwork releasing the mortgage lien on your property. You may be asked to pay an additional fee if you wish to receive loan payoff documentation in a more timely manner.

If you are subject to any of these fee’s with your lender, be sure to add them to your total budget. If you are not sure if you are subject to these lender fee’s, all you have to do is call your lender and they should be able to help you identify those.

On a positive note, every month a portion of your mortgage payment goes to your escrow account to pay for your years property tax and property insurance bill. You will most likely have money left over (or an overage) in your escrow account. You usually receive the extra funds in your escrow account thirty to forty five days after closing.

Cost of selling a house Moving costs

9. Moving Costs

Don’t forget to budget for all packing and moving expenses. If you’re selling your place, you’re going to have to move all your stuff. Paying for that will set you back between $911 and $2,514, according to HomeAdvisor. However, that price tag can be a lot more if you’re moving several rooms’ worth of furniture or if you’re moving across the country.

If you want to save money on your moving costs, you can consider doing it yourself. Be honest, though. Can you manage all that heavy lifting? You might save money on the move, but you also might need to pay for a massage and take some days away from work after it, too. Here are a few expenses to keep in mind: 

        • Boxes
        • Tape
        • Trucks
        • Movers
        • Storage 
        • Rentals

You may also want to budget for all of that pizza and beer to thank your friends and family for helping you move! 

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Cost of selling a house  Temporary accommodations

10. Temporary Accommodations

Do you need temporary housing for the time between selling your home and purchasing the next one? If so, then you want to make sure to budget for all of the expenses that you may see throughout the process. This includes Rents, Deposits, and utilities. Make sure to budget for those ongoing expenses for both properties. 

Regardless of where you’re moving next, most sellers typically have an overlap of about a month and a half when they’re still paying their existing mortgage, plus alternative housing costs.

Summary: 

 

Every property is different, so you’ll need to carefully consider what will impact the math on selling your house. Selling a house is exciting but it isn’t free. It’s easy to feel frustrated by all of the potential costs of selling a house. That being said, you should remember that many of these costs will actually improve the resale value of your property and help you sell your home faster. A faster sale doesn’t just save stress. It can also save you money by reducing the time that you own two properties.

Preparing your home

The bottom line is that most of the costs of selling your home are, like homeownership itself, often a wise investment. If you’re unsure about the costs that go with putting your home on the market, do your research and take a look at the  *10 most important steps to prepare your home for the market. *  Click the link and learn how to best prepare your home for sale!

If you are considering buying, selling, or investing in the greater Charlotte area, we would love to be your real estate resource of choice. Please call/ text/ or email us today:

Contact us through:

📱Call/Text Direct (704)-631-3977

📧Email: info@thefinigangroup.com

💻Website: www.thefinigangroup.com

If you are considering selling your home,  make sure you choose the best Realtor. Watch this video to make sure you are asking your potential realtor the RIGHT questions:  10 Questions You Must Ask Your Realtor Before Hiring Them. 

“Find what moves you”
Contact us today